When taking up their studies, many students have to stand on their own feet for the first time in their lives. Accordingly, they must learn to handle their money in all aspects of life. In this situation, they are easily in danger to get lost due to all offers and sales practices so far unknown – and to go in debt.

One good example are mobile phones (note: in Germany, they are mostly called "handys"). Suppliers advertise with the latest mobiles – for free! To get the free mobile, a contract must be concluded, often for a period of 24 months. The joy at the new mobile and maybe even additional "presents" like digital cameras or computer paddles blinds in regard to expensive telephone rates. That is why a prepaid mobile mostly is much cheaper. To make phone calls or to send texts, you must buy a voucher for e.g. 10 € which you can use up accordingly. With this procedure you are sure not to spend more money on calls, that you do actually have.

Another debt-trap is the overdraft loan (Dispositionskredit) of the giro-account. Naturally, this loan is not interest-free. It is, on the contrary, very cost-intensive, as the interest is especially high! When using credit cards, you must keep in mind, too, to spend only that amount of money which is truly at your disposal.

One thing is for sure: you definitely must pay loans. In Germany, there is quite a rigid payment obligation and payments are normally not deferred. Whether the lease, tuition fees or health insurance charges are concerned: make sure to pay in time. If you should be in the awkward situation of not being able to fulfil your obligations, you must contact the institution in question immediately. And please, don’t you ever borrow from a private money lender! The terms and conditions of some of the so called loan-sharks are often barely lawful and cause lasting damage to the debtor.

Other important debt-traps are purchase of a car, as the running costs are often underestimated, and (instalment) purchases from mail-order-businesses, where business is transacted via sales account.

We advise you to keep an eye on your funds and your expenses. If you would spend your shopping cash, this was much easier, as you can see, how much money you have got and how much you spend.

You can find more detailed information at the Schuldenratgeber (debt counselor; only available in German language) of the Bundesarbeitsgemeinschaft Schuldnerberatung (= federal association for dept counselling).

If you should be indebted, just face the situation and contact a local Schuldnerberatung (= debt counselling; list at hannover.de in German language) immediately!